National Research Corporation FQ08 (Qtr End 9/30/08) Earnings Call Transcript

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2008-11-20 05:35:28.0

Tags: Call Transcript, William Blair Co., Earnings, Subscription, Christina, Blacksheek, Sales Strategy, Sales Force Management, Vertical Industries, Benefits, Healthcare, Sales, Enterprise Software, Software, Human Resources, Seeking Alpha, Call Transcript, William Blair Co., Earnings, Subscription, Christina, Blacksheek, Sales Strategy, Sales Force Management, Vertical Industries, Benefits, Healthcare, Sales, Enterprise Software, Software, Human Resources, Seeking Alpha, National Research Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Christina [Blacksheek] – William Blair & Company.

Christina [Blacksheek] – William Blair & Company.

I wanted to start off first with a question regarding the net new contracts of the $2.7 million during the quarter. Can you provide a breakout? I know last quarter you provided a breakout of net new sales based on Picker sales or Healthcare Market Guide or subscription based?

Michael D. Hays

Healthcare Market Guide net new sales for the quarter were – let me get the exact number for you here, $998,000. TGI which would be the other subscription based product is around $570,000 with the remainder in NRC Picker.

Christina [Blacksheek] – William Blair & Company.

Then for the Healthcare Market Guide, that $998,000 that’s all the new product, correct?

Michael D. Hays

Correct. [Inaudible] There may have been some of the classic annual deliverable in there.

Christina [Blacksheek] – William Blair & Company.

On the subscription base, do you have a dollar amount of what the new contracts for subscription based products was?

Michael D. Hays

I don’t have that added together. If you have another questions go ahead and ask it and I’ll get that number and before I end the call I’ll provide that.

Christina [Blacksheek] – William Blair & Company.

Moving along to the expense front, should we look at for example the uptick in direct expenses, I understand that has a lot to do with the repositioning of the sales force. Is that something in the 49% range that I should be looking at going forward?

Patrick E. Beans

No. It should be going forward combining the two groups together we should have a similar percentage but with the Healthcare Market Guide the balance of the – which is the last time we will have an annual subscription cost going through there is also part of that 49%.

Christina [Blacksheek] – William Blair & Company.

I mean is it far to say maybe coming back down towards a 45% level?

Patrick E. Beans

Yes, that would probably be correct.

Michael D. Hays

The one answer to your other question on the mix between subscription based and non-subscription based products on net new sales is roughly 55% subscription base and 45% non-subscription base.

Operator

Sir, we seem to have no questions at this moment. I’ll turn the call back to you.

Michael D. Hays

 

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